NMLS questions with correct answers

Acceleration Clause Answer Allows lenders to demand payment in full if the borrower defaults on the loan (can be construed as predatory lending) Alienation Clause (Due on Sale Clause) Answer Says you must repay your mortgage if you sell your home to a new owner (loan is not assumable) Appraiser Independance Requirements replaced HVCC Answer home valuation code of conduct Due on Demand Clause Answer (Considered a predatory practice) The lender can demand repayment of the loan in full at anytime for any reason HOEPA Answer Home Ownership and Equity Protection Act (Reg Z Sec 32) Amends TILA Nonrecourse Agreement Answer Loan agreement under which the collateral securing a loan is the unltimate source of repayment, and the lender cannot hold the borrower personably liable in the event of default. Lender can seize (and sell) the collateral but cannot seize non-pledged asset or property. ReConveyance Answer Method in which a lein is removed from a property when payment is made in full. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 Answer Purpose is to promote the financial stability of US by improving accountability and transparency in the financial system. Created the Consumer Financial Protection Bureau. Changed MLO compensation rules